U.S. crude oil refining capacity experienced a notable boost this year, climbing 1.5% to reach 18.38 million barrels per day. The recent expansion includes Exxon Mobil's Beaumont, Texas, refinery, which underwent a significant increase of approximately 250,000 barrels per day.

As of the start of 2023, there were 124 active oil refineries nationwide. After a two-year downturn due to decreased demand during the COVID-19 pandemic, U.S. refining capacity saw a significant rebound. In 2023 alone, capacity surged by over 100,000 barrels per day to reach 18.1 million, although this still trails the peak of 18.98 million barrels per day seen in 2019.

The uplift in capacity can be credited to expansions at key facilities like those operated by Marathon Petroleum Corp and Citgo Petroleum. Notably, the expansion at ExxonMobil's Beaumont facility was the largest seen in a U.S. refinery in more than a decade. Marathon Petroleum Corp remains the largest U.S. refiner, significantly aided by other major players like Valero Energy Corp and Motiva Enterprises. The industry is also increasingly pivoting towards renewable energy sources.

Valero Energy Corp stands out as the second-largest U.S. refiner, with its refining capacity making up about 12% of the national total at 2.21 million barrels per day. 

In 2019, the U.S. crude oil refining industry reached a historic peak, with distillation capacities hitting an unprecedented 19 million barrels per day (bpd), according to the Energy Information Administration (EIA). This marked a growth of 0.2 million bpd or a 0.9% increase from the prior record of 18.8 million bpd established the previous year.

The landscape of U.S. refineries in 2019 included 135 operable facilities, with the Gulf Coast hosting around half of the country's total refining capacity. Interestingly, the dependency on imported crude oil in this region significantly decreased to 28% of total crude inputs in 2019, down sharply from 69% in 2010.

Additionally, the Gulf Coast experienced an early start to its refinery maintenance schedule, which had a substantial impact on operations. Notably, maintenance shutdowns affected significant players like the Motiva Port Arthur and Marathon Galveston Bay refineries. These two facilities alone represent about 7% of the total U.S. refining capacity, translating to more than one million barrels per day of processing capacity. Refinery maintenance, while disruptive, is a routine and seasonal activity, typically reaching its peak between late February and March.

Lake Charles Refinery (CITGO)

• Crude Oil Refining Capacity: 463,000 barrels per day 

• Geographic Size: 2,000 acres

• Ship Channel Docks: 4

• Waste Water Treatment Plants: 1

• Average Gasoline Production Capacity: 209,500 barrels per day

The Lake Charles Refinery, ranked as the seventh-largest in the United States, is known for its exemplary safety standards, setting it apart as one of the safest facilities in the refining industry.

In the first quarter of 2024, the refinery processed a total throughput of 830,000 barrels per day, with crude runs accounting for 769,000 bpd and an average crude utilization rate of 95%. This performance marks an improvement from the first quarter of 2023, where total throughput was slightly lower at 814,000 bpd and crude runs were 772,000 bpd, with an average utilization rate of 96%.

Financially, CITGO's investment in maintaining and enhancing the refinery's capabilities is substantial. In recent expenditures, the company invested $99 million in turnaround and catalyst costs, alongside an additional $101 million in direct capital expenditures. Looking ahead, the projected expenses for turnaround, catalyst, and other capital expenditures in 2024 are estimated to reach around $1.1 billion.

Lemont Refinery (CITGO)

• Average Crude Capacity: 177,000 barrels per day

• Geographic Size: 1,100 acres

• Ship Channel Docks: 1

• Waste Water Treatment Plants: 1

• Average Gasoline Production Capacity: 95,200 barrels per day 

The Lemont Refinery in Illinois stands as a key player in the supply chain of transportation fuels, particularly serving the upper Midwest. This refinery has not only achieved a crude capacity utilization rate of 103% but also set a new monthly record for jet fuel production. Its strategic role extends beyond fuel production; it manufactures several grades of gasoline, diesel, jet fuel, and high-quality hydrocarbon solvents.

Wood River Refinery (Phillips 66) 

• Phillips 66 Ownership: 50% of listed capacities

• Gasolines Production: 176,000 barrels per day 

• Distillates Production: 140,000 barrels per day 

• Crude Throughput: 346,000 barrels per day 

• Total Throughput: 360,000 barrels per day 

The Wood River Refinery is strategically situated in Roxana, Illinois, approximately 15 miles northeast of St. Louis, Missouri, at the meeting point of the Mississippi and Missouri rivers. This refinery boasts a comprehensive suite of processing units including crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrocracking, hydrodesulfurization, and delayed coking units.

Primarily focused on producing a high percentage of transportation fuels, the Wood River Refinery also manufactures petrochemical feedstocks, asphalt, and fuel-grade petroleum coke. The refined petroleum products from this facility are distributed across the Midcontinent region using a diverse network of transportation modes, including pipeline, railcar, barge, and truck.

Rodeo San Francisco Refinery (Phillips 66)

• Gasolines Production: 60,000 barrels per day 

• Distillates Production: 65,000 barrels per day 

• Crude Throughput: 120,000 barrels per day 

• Total Throughput: 140,000 barrels per day 

The San Francisco Refinery operates two major facilities interconnected by pipelines: the Santa Maria facility in Arroyo Grande, 200 miles south of San Francisco, and the Rodeo facility in the San Francisco Bay Area. The intermediate products from Santa Maria are transported to Rodeo for final upgrading into finished petroleum products, such as CARB-grade gasoline and fuel-grade petroleum coke, which are primarily distributed within California via pipeline and barge. Additionally, some products are exported to Latin America via waterborne cargo.

The refinery is actively transitioning towards renewable fuels production. The Rodeo facility is set to significantly ramp up its output, aiming for over 800 million gallons per year (50,000 BPD) of renewable fuels by the end of the second quarter of 2024. This includes a substantial increase in renewable diesel production, which achieved full rates of 8,000 BPD in July 2021 through the hydrotreater feedstock flexibility project. The Rodeo Renewed refinery conversion project, is expected to be operational in Q2 2024.

Los Angeles Refinery (Marathon Petroleum Corporation)

• Refining capacity: 365,000 barrels per day

An integral part of the refinery is its Watson cogeneration plant, which has a capacity of 400 megawatts, making it the largest cogeneration facility in California.

Located in Los Angeles County near the bustling Los Angeles Harbor, the Los Angeles refinery stands as the largest on the West Coast. It boasts a substantial crude oil processing capacity of 365,000 barrels per calendar day. This facility is a key player in the production of clean fuels, processing a diverse array of crude oils sourced from California’s San Joaquin Valley and Los Angeles Basin, as well as from remote locations like the Alaska North Slope, South America, West Africa, and other international regions.

The refinery specializes in producing cleaner-burning fuels compliant with the California Air Resources Board (CARB) standards, including CARB gasoline and diesel. It also produces conventional gasoline, various distillates, natural gas liquids, petrochemicals, heavy fuel oil, and propane. 

Borger Refinery (Phillips 66)

• Phillips 66 Ownership: 50% of listed capacities

• Gasolines Production: 100,000 barrels per day 

• Distillates Production: 70,000 barrels per day 

• Crude Throughput: 149,000 barrels per day 

• Total Throughput: 184,000 barrels per day 

Location and Operations: The Borger Refinery is strategically located in Borger, Texas, in the Texas Panhandle, about 50 miles north of Amarillo. This refinery is equipped with sophisticated processing units including crude distillation, naphtha reforming, fluid catalytic cracking, alkylation, hydrodesulfurization, and delayed coking units. The refined products from the Borger Refinery are primarily distributed to markets in West Texas, New Mexico, Colorado, and the Midcontinent region.

TOP Operators of US Refineries 

Saudi Aramco, Texas

PORT ARTHUR

It is the largest refinery in the US. 

The Motiva refinery in Port Arthur, Texas holds the title of North America’s largest oil refinery. Over the years, the refinery underwent various ownership changes, including a significant phase as a joint venture between Shell and Saudi Aramco, until Saudi Aramco took complete ownership in 2017. In 2012, the refinery underwent a landmark expansion, boosting its capacity to over 600,000 barrels per day. Today, the Motiva refinery is versatile in its operations, processing various types of crude to supply a wide spectrum of fuels and oils across the United States.

ExxonMobil Corp

ExxonMobil, after a significant $2 billion expansion in spring 2023, stands as the third-largest oil producer in the U.S., with a capacity reaching nearly 1.95 million barrels per day. This expansion notably increased the processing capacity of its Beaumont refinery to 609,000 bpd.

BATON ROUGE

Located in Baton Rouge, Louisiana, the ExxonMobil Baton Rouge Refinery ranks as the fifth-largest in the U.S. and thirteenth globally. This facility processes over 520,000 barrels daily, a capacity it has maintained since 2020. The refinery complex covers nine plants along the east bank of the Mississippi River and employs approximately 6,300 workers, including 4,000 direct hires. Notably, the refinery's tank farm capacity matches its processing rate, making it a vital component of ExxonMobil’s extensive operations.

BAYTOWN

The Baytown Refinery, situated in Baytown, Texas, is a key facility owned by ExxonMobil. Established in 1919 by the Humble Oil Company, it has a daily capacity of 564,540 barrels, making it one of the largest refineries in the United States. Spanning 2,400 acres alongside the Houston Ship Channel, the refinery stands as Baytown's largest employer.

Marathon Petroleum Corp

Marathon Petroleum Corp retains its status as the largest refiner in the United States, with the capacity to process up to 2.95 million barrels per day. This accounts for 16% of the country's total refining capacity across its 13 U.S. plants.

GALVESTON BAY

The Galveston Bay Refinery also recognized as Marathon Texas City Refinery is situated within the Texas City Industrial Complex on Galveston Bay. It boasts a capacity of 593,000 barrels per day, making it one of the largest refineries in both Texas and the United States. Originally ranked as the eighth-largest globally by 2018, it merged with Marathon’s other Texas City refinery in 2018. Despite its capabilities, in 2021, it was identified as the top emitter of benzene, a known carcinogen, in the U.S., raising significant environmental concerns.

GARYVILLE

Owned by Marathon Petroleum Corporation, the Garyville Refinery is the second-largest oil refinery in America, with a processing capacity of 596,000 barrels per day. Located in Garyville, Louisiana, this refinery covers 3,500 acres along the Mississippi River and was notably expanded in 2009 through the $3.9 billion Garyville Major Expansion Project. Its operations are extensive, involving crude distillation, hydrocracking, catalytic cracking, and more, focusing primarily on refining heavy sour crude into gasoline, diesel, and other products.

Chevron Corp

PASCAGOULA

Pascagoula Refinery, located in Mississippi, has a capacity of 356,440 barrels per day. It is primarily engaged in the production of motor gasoline and fuel oils, including Liquefied Petroleum Gas (LPG). The refinery also produces specialty products such as benzene, ethylbenzene, propylene, and premium base oils. The refining processes at Pascagoula involve separation, treatment to remove impurities, and cracking to produce various transportation fuels.

BP PLC

WHITING

The Whiting Refinery is strategically located on the southwestern shore of Lake Michigan. It extends across Whiting, Indiana, and into parts of Hammond and East Chicago. With a crude oil processing capacity of 435,000 barrels per day, it ranks as the seventh-largest refinery in the United States. 

TOP US Oil Refineries 

Total Number in the US: 86

Source: Rextag

Oil Refineries - Owner by Capacity

Source: Rextag

Conclusion

In 2023, the operable atmospheric crude oil distillation capacity in the United States, the primary metric for measuring refinery capacity, saw an increase of 2%, or 324,000 barrels per day. 

The reported 2% growth in 2023 marks the second consecutive year of capacity expansion in the U.S. refining sector. However, despite this growth, the total capacity of 18.4 million barrels per day at the start of 2024 was within the record high of 19.0 million barrels per day set on January 1, 2020.

A significant portion of the 2023 capacity increase was due to the expansion of ExxonMobil’s Beaumont refinery in Texas, which underwent a 240,000 barrels per day expansion project. This development raised the refinery’s total capacity to 609,000 barrels per day to the national capacity increase.

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